Tax return filers make common mistakes
By: Mark Gruba
Updated: February 11, 2013
CPA David Young discussed many of the common mistakes made when filing income tax returns Monday morning on News 8 at Sunrise.
Young said one of the most common mistakes he sees is people filing as single taxpayers when they qualify to the more favorable head of household status. He noted, if you are single, and you pay more than half of your non-adult child's costs, you qualify for head of household status. You may also qualify if you are still married and live with your child but apart from your spouse for at least the last half of 2012.
Math errors are another common pitfall said Young. According to the Internal Revenue Service, a math error is an incorrect number entered on the return - with or without a calculation. In addition, people often include an incorrect social security number.
Young also said many people file their return with incorrect or missing forms and schedules. Some send in their return without signing it as well. He added, sometimes people claim ineligible dependents or fail to claim credits, such as a child tax credit. That is also true when people fail to take into account new tax laws.
Failure to report and pay domestic payroll taxes is another common mistake according to Young. That can include anyone employing an in-home care giver, nanny or housecleaner. His list also includes forgetting to claim income that's not included on a form W-2, form 1099 or other return, not filing a return when due a refund and failing to figure whether or not you're libable for the alternative minimum tax.
Young also said people often enter the wrong amount of taxable social security benefits and mail their return to the wrong address. He said double check all your work before sending in your income tax return.
He noted standard deduction used when itemizing is more advantageous, and reminded New York state filers that they are required to electronically file their return if they meet all three of the following conditions: You use software to prepare your own personal income tax return, your software supports the electronic filing of your return and you have broadband internet access.
For more information, click here.
Young said one of the most common mistakes he sees is people filing as single taxpayers when they qualify to the more favorable head of household status. He noted, if you are single, and you pay more than half of your non-adult child's costs, you qualify for head of household status. You may also qualify if you are still married and live with your child but apart from your spouse for at least the last half of 2012.
Math errors are another common pitfall said Young. According to the Internal Revenue Service, a math error is an incorrect number entered on the return - with or without a calculation. In addition, people often include an incorrect social security number.
Young also said many people file their return with incorrect or missing forms and schedules. Some send in their return without signing it as well. He added, sometimes people claim ineligible dependents or fail to claim credits, such as a child tax credit. That is also true when people fail to take into account new tax laws.
Failure to report and pay domestic payroll taxes is another common mistake according to Young. That can include anyone employing an in-home care giver, nanny or housecleaner. His list also includes forgetting to claim income that's not included on a form W-2, form 1099 or other return, not filing a return when due a refund and failing to figure whether or not you're libable for the alternative minimum tax.
Young also said people often enter the wrong amount of taxable social security benefits and mail their return to the wrong address. He said double check all your work before sending in your income tax return.
He noted standard deduction used when itemizing is more advantageous, and reminded New York state filers that they are required to electronically file their return if they meet all three of the following conditions: You use software to prepare your own personal income tax return, your software supports the electronic filing of your return and you have broadband internet access.
For more information, click here.
